FEMSA Announces Second Quarter 2025 Results

Rhea-AI Summary

FEMSA (NYSE: FMX) reported mixed Q2 2025 results with total consolidated revenues growing 6.3% and income from operations increasing 1.2% year-over-year. The company faced challenges in Mexico due to soft consumer environment and adverse weather affecting retail and beverage operations.

Key performance metrics include: Proximity Americas revenues up 6.9% but operating income down 2.8%, Proximity Europe revenues surging 31.4% with 54.4% operating income growth, and Coca-Cola FEMSA revenues rising 5.0%. Digital services showed strong growth with Spin by OXXO reaching 9.4 million active users (18.8% growth) and Spin Premia achieving 26.6 million active loyalty users (16.9% growth).

Positive

• Total consolidated revenues increased 6.3% year-over-year
• Proximity Europe showed exceptional growth with 31.4% revenue increase and 54.4% operating income growth
• Health division revenues grew 15.6% with 13.1% same-store sales growth
• Digital services showed strong user growth: Spin by OXXO +18.8% and Spin Premia +16.9%
• Strong performance in operations outside Mexico, particularly in South America

Negative

• Proximity Americas operating income declined 2.8%
• Negative same-store sales growth (-0.4%) in Proximity Americas
• Weak traffic numbers in Mexico operations
• Soft consumer environment and adverse weather conditions impacting retail operations
• Underperformance in convenience categories (soft drinks, beer, tobacco) across channels in Mexico

Insights

Financial Analyst

FEMSA delivered mixed Q2 2025 results with 6.3% revenue growth but operational challenges in Mexico amid weak consumer environment.

FEMSA's Q2 2025 results reveal a mixed performance across its diverse business portfolio. The company achieved 6.3% growth in consolidated revenue and a modest 1.2% increase in operating income compared to Q2 2024. However, on a comparable basis, operating income actually declined by 1.5%, indicating underlying challenges.

The company's core Proximity Americas division (OXXO stores) showed concerning trends with negative same-store sales growth of -0.4% and an operating income decline of 2.8%. This weakness stems primarily from Mexico operations, where a soft consumer environment and adverse weather conditions significantly impacted traffic for convenience categories including soft drinks, beer, and tobacco.

By contrast, FEMSA's international operations demonstrated strength. Proximity Europe (Valora) delivered impressive 54.4% operating income growth, while Health division revenues increased 15.6% with operating income up 5.7%. These international operations, combined with favorable currency effects, helped offset domestic weaknesses.

The digital financial services segment shows promising growth with Spin by OXXO reaching 9.4 million active users (up 18.8%) and Spin Premia loyalty program growing to 26.6 million active users (up 16.9%). The average tender at OXXO Mexico increased significantly to 45.8% from 36.1% in Q2 2024, indicating strong adoption of the company's digital payment and loyalty solutions.

Coca-Cola FEMSA faced similar challenges in Mexico but performed well internationally, particularly in South America. Overall, this subsidiary posted 5.0% revenue growth but nearly flat operating income growth at 0.2%.

Management has acknowledged the challenges in Mexico and outlined strategic initiatives including adjustments to product assortment, pricing architecture, targeted promotions, and expense control. The effectiveness of these measures will be crucial as FEMSA approaches the important Q4 selling season.

MONTERREY, Mexico, July 28, 2025 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announced today its operational and financial results for the second quarter of 2025.

• FEMSA: Total Consolidated Revenues grew 6.3% and Income from Operations increased 1.2% compared to 2Q24.
• FEMSA Retail¹: Proximity Americas total Revenues grew 6.9% and Income from operations decreased 2.8% versus 2Q24.
• SPIN: Spin by OXXO had 9.4 million active users² representing 18.8% growth compared to 2Q24 while Spin Premia had 26.6 million active loyalty users² representing 16.9% growth compared to 2Q24, and an average tender³ at OXXO Mexico of 45.8% which increased from 36.1% tender in 2Q24.
• COCA-COLA FEMSA: Total Revenues and Income from Operations grew 5.0% and 0.2%, respectively against 2Q24.

Financial Summary for the Second Quarter 2025 Change vs. comparable period
	Total Revenues		Gross Profit		Income from Operations		Same-Store Sales
As Reported	2Q25	YTD25	2Q25	YTD25	2Q25	YTD25	2Q25	YTD25
FEMSA Consolidated	6.3%	8.3%	4.2%	9.2%	1.2%	2.6%
Proximity Americas	6.9%	6.9%	6.9%	8.3%	(2.8%)	(6.3%)	(0.4%)	(1.1)
Proximity Europe	31.4%	24.9%	25.6%	20.3%	54.4%	22.3%	N.A.	N.A.
Health	15.6%	18.3%	13.6%	18.3%	5.7%	15.2%	13.1%	14.3%
Fuel	0.6%	1.2%	6.6%	5.6%	13.6%	1.8%	4.9%	5.2%
Coca-Cola FEMSA	5.0%	6.7%	3.4%	6.9%	0.2%	3.3%
Comparable(A)
FEMSA Consolidated	2.2%	2.7%	0.0%	4.5%	(1.5%)	(3.9%)
Proximity Americas	2.0%	1.7%	4.3%	5.7%	(3.1%)	(10.8%)	(0.6%)	N.A.
Proximity Europe	5.9%	3.5%	1.2%	(0.3%)	24.0%	0.6%	N.A.	N.A.
Health	6.7%	6.8%	4.5%	6.5%	(5.2%)	2.2%	4.8%	N.A.
Fuel	0.6%	1.2%	6.6%	5.6%	13.6%	1.8%	4.9%	N.A.
Coca-Cola FEMSA	2.4%	3.3%	0.9%	3.5%	(2.6%)	0.3%

José Antonio Fernandez Carbajal, FEMSA’s Chief Executive Officer, commented:

“During the second quarter, we delivered a mixed set of results. In our core operations in Mexico, we faced a challenging combination of a soft consumer environment and very adverse weather that put pressure on retail operations and beverage volumes. On the positive side, several of our proximity and beverage operations outside of Mexico delivered strong results, which combined with currency tailwinds, helped to mitigate the impact. The retail operations outside of Mexico provided encouraging signs that they are firing on all cylinders as they fine-tune their value propositions and increase their scale.

At Proximity Americas Mexico, weak traffic numbers stood out against an otherwise largely positive set of trends outside of Mexico, reflecting an environment in which convenience categories such as soft drinks, beer and tobacco underperformed other categories across channels. We are working hard together with our supplier partners to ensure we can adjust our assortment and price-package architecture to remain competitive in addressing our customers’ needs as we advance through the summer and approach the key selling season in the fourth quarter. For its part, Valora delivered a solid result, as did our Health operations outside of Mexico. Finally, Coca-Cola FEMSA navigated the same challenging environment in Mexico which it is aggressively addressing with highly targeted and segmented packaging strategies, promotional activity, and expense control. Outside of Mexico, KOF continued to improve its competitive position and delivered strong results, particularly led by certain markets in South America, further reinforced by currency tailwinds.

We remain confident of the initiatives being implemented across businesses, and we are focused on reversing the traffic and volume trends and on managing costs and expenses in the second half of the year. Our businesses have repeatedly proven their resilience, and we believe we have the right strategy and team for the task.”

To obtain the full text of this earnings release, please visit our Investor Relations website at https://femsa.gcs-web.com/ under the Financial Reports section

CONFERENCE CALL INFORMATION
Our Second quarter 2025 Conference Call will be held on: Monday, July 28, 2025, 11:00 AM Eastern Time (9:00 AM Mexico City Time). The conference call will be webcast live through streaming audio.
Telephone:	Toll Free US: International:	(866) 580 3963 +1 (786) 697 3501
Webcast:	https://edge.media-server.com/mmc/p/5pc7rawp/
Conference ID:	FEMSA
If you are unable to participate live, the conference call audio will be available on https://femsa.gcs-web.com/financial-reports/quarterly-results

ABOUT FEMSA
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates through a Health Division, which includes drugstores and related activities and Spin, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Best-in-Class World Index & Dow Jones Best-in-Class MILA Pacific Alliance Index, both from S&P Global; FTSE4Good Emerging Index; MSCI EM Latin America ESG Leaders Index; S&P/BMV Total México ESG, among other indexes.

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^(A) Please refer to page 13 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.
¹ FEMSA Retail: Proximity Americas & Europe, Fuel and FEMSA Health.
² Active User for Spin by OXXO: Any user with a balance or that has transacted within the last 56 days.
Active User for Spin Premia: User that has transacted at least once with OXXO Premia within the last 90 days.
³ Tender: OXXO MXN sales with Spin Premia redemption or accrual / Total OXXO MXN Sales, during the period.

Investor Contact
(52) 818-328-6000
investor@femsa.com.mx
femsa.gcs-web.com

Media Contact
(52) 555-249-6843
comunicacion@femsa.com.mx
femsa.com

FAQ

What were FEMSA's (FMX) key financial results for Q2 2025?

FEMSA reported 6.3% growth in total consolidated revenues and 1.2% increase in income from operations. Proximity Americas revenues grew 6.9% while Coca-Cola FEMSA revenues increased 5.0%.

How did FEMSA's Mexico operations perform in Q2 2025?

FEMSA's Mexico operations faced challenges with weak traffic numbers and negative same-store sales growth (-0.4%) due to soft consumer environment and adverse weather conditions affecting retail and beverage operations.

What was the performance of FEMSA's digital services in Q2 2025?

Digital services showed strong growth with Spin by OXXO reaching 9.4 million active users (18.8% growth) and Spin Premia achieving 26.6 million active users (16.9% growth), with average tender at OXXO Mexico reaching 45.8%.

How did FEMSA's European operations perform in Q2 2025?

FEMSA's Proximity Europe division delivered strong results with 31.4% revenue growth and 54.4% increase in operating income compared to Q2 2024.

What were the main challenges FEMSA faced in Q2 2025?

FEMSA faced challenges including soft consumer environment in Mexico, adverse weather conditions, weak traffic numbers, and underperformance in convenience categories such as soft drinks, beer, and tobacco across channels.